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Detroit Medical Center: Cuts Threaten Projects

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CBS Detroit (con't)

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DETROIT (WWJ/AP) - The Detroit Medical Center says investments promised as part of its sale to a for-profit company could be in jeopardy because of state funding cuts.

State lawmakers cut funding to the tune of $20 million, with matching federal grants, for the DMC’s Hutzel Women’s Hospital, according to a report in The Detroit News.

Republican Senate Appropriations Committee Chairman Roger Kahn of Saginaw Township on Tuesday, however, introduced a provision to restore the funding.

The planned investments are part of a deal made when the Detroit Medical Center was sold to Vanguard Health Systems in 2011. Vanguard promised to invest $500 million in new construction over five years, plus $350 million in routine capital spending over five years.

Those commitments remained in place when Vanguard was acquired by Dallas-based Tenet Health Systems in June.

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